Boundaries of micro insurance is expanded as motor and foreign employment insurance is now open for them

Kathmandu : Nepal Insurance Authority has taken a step for expanding the scope of micro insurance. After the motor insurance scheme was granted, the authority opened the way for micro insurance companies to issue foreign employment as well.

The Authority has amended the Micro Insurance Directive, 2079 (B.S. In that meeting, it has been arranged that the micro insurance company can provide motor micro insurance up to 5 million liability.

Previously, the micro insurance company was allowed to insure only trailers, tractors, threshers, agricultural equipment under motor, motorcycles, tricycles, mopeds, tramps, riksaws, and carts under motor micro insurance. Similarly, motor third party insurance can also be done in micro insurance.

Similarly, the way to issue foreign employment (term) insurance has been opened to micro-insurance companies. The Authority has amended the Micro Insurance Directive, 2079 B.S and provided that small insurance companies are allowed to carry out foreign insurance.

Previously, only large life insurance companies were selling micro insurance articles, now micro-life insurance companies can also issue foreign employment insurance up to 500 thousand Rupees same as life insurance companies.

By adding sub-section 4 to section 20 of the Micro Insurance Directive, 2080 B.S, the authority has provided that foreign employment (term) insurance policies can also be sold.

Since 2073 B.S, the government has implemented a system to issue foreign employment (term) insurance for citizens who have gone to foreign employment. Because of which around more than 1 million people from Nepal every year apply for foreign employment and also take life insurance as it is mandatory by law. This mandatory has helped all the insurance companies from micro insurance to big life insurance companies to survive in Nepal. Now, this amendment for micro insurance will also help those micro insurance company to survive in Nepal by the help of foreign insurance policy.